Republic of Ireland Bridging Loans
If you’re considering taking out a bridging loan to purchase a property in the Republic of Ireland, this page might be able to answer some of the questions you’ve been asking yourself.
Whether buying a new home, commercial property or land in the Republic of Ireland, bridging finance can be a quick and easy way of generating the finance your project needs.
What is a bridging loan?
A bridging loan provides short-term, fast and flexible funding to anyone buying a property, usually property developers or landlords. These loans allow buyers to “bridge” the financial gap between offloading their current property and buying a new one.
Borrowers choose bridging loans because they’re quicker to arrange than traditional mortgages — which means they can move faster on their property purchase. A mortgage application can take two to six weeks, but with a bridging loan, the money can be available within 72 hours of application (depending on your circumstances).
How do bridging loans work in Ireland?
In Ireland, you can usually borrow up to 75% of the property’s value if the bridging loan is the first charge. This would mean you’d have to pay a 25% deposit. These loans are usually secured against property (residential or commercial) or plots of land.
When applying for an Irish bridging loan, lenders want to see a robust exit strategy showing how you plan to repay the loan. So make sure you work alongside a specialist Irish bridging lender to ensure you’ve ticked all the boxes.
It’s important to note that the primary regulator of loans in the Republic of Ireland is the Central Bank of Ireland. However, when it comes to commercial bridging loans, just like across the UK and most of Europe, they remain unregulated.
Bridging loans for homebuyers in Ireland
There are many ways to use a bridging loan in Ireland; here are a few:
- If you want to buy a property before your current one sells, a bridging loan means you can access the necessary funds to secure that property right away.
- Self-build construction and renovation projects can be pricey to finance. Bridging loans, allowing you to “roll up” interest and avoid making monthly payments, could present an alternative for self-build projects.
- Auction properties require a 10% deposit and full payment within 20-30 days. A bridging loan can provide you with the cash needed.
What else can I use my bridging loan for?
Other than completing the purchase of a new property, there are a few different ways bridging finance can be used:
- Business Financing — bridging finance can be used to cover start-up costs and other short-term urgent business expenses, should you be unable to raise funds yourself.
- Development Financing — when buying a property needing renovation, bridging finance provides a great solution to make the necessary improvements to increase the value, flip it, and repay the loan.
- Land Purchase — a bridging loan may be ideal for purchasing land, whatever its intended use is.
Bridging loan companies operating in Ireland
Here at BLD, we work closely with many trusted providers operating in the Republic of Ireland.
Octopus Real Estate
With a wealth of experience in lending, boasting over £5 billion invested in over 3800 loans, Octopus Real Estate, part of Octopus Group, has started offering bridging finance for projects in the Republic of Ireland.
In 2017, Fiduciam became a lender in Ireland and has since provided over €150 million in loans, primarily for residential properties, hotels and farms, care homes and other commercial establishments. Since 2020 they have established themselves as a prominent provider in the area, establishing Fiduciam Ireland.
With offices in Dublin, Novellus is an experienced private lender providing Bridging Finance solutions in the UK and Republic of Ireland since 2013. They specialise in funding buy-to-let and commercial properties, land, and properties requiring refurbishment.
Based out of Dublin, Onate comprises a small and personable team who make all their decisions in-house, helping you move quickly on your purchase.
They provide bridging loans from €250k to €4m against residential and mixed-use property and residential development sites across Ireland.
In two short years since their establishment in 2018, Property Bridges’ community of investors had funded €10 million in bridging and development finance across Ireland, supporting the construction of over 100 family homes. Since then, they have secured an additional €100 million from Aros Kapital, enabling them to fund larger projects up to €12.5 million.
With their in-house decision-making process, Santiago Capital’s experienced lending team can quickly structure deals on a bespoke basis. They are a dedicated Irish lender with their own finances and local team to help you through the process of securing fast bridging finance.
Offering loans in the range of €500k and €10 million, with up to 85% LTV, Sancus lends to numerous projects across Ireland. These include high-rise developments, major structural renovations, office and residential conversion, and mixed-use and HMO properties.
The team at Pinemont Finance can support you through the process of acquiring your bridging loan, enabling you to secure funding without losing out on a timely, important deal.
Founded in 2015, they offer advances of €500k to €5 million and aim to reach decisions within 24 hours of evaluation.
Do any Irish banks offer bridging finance?
Although banks used to offer customers bridging loans, few traditional high street banks now offer them. The best way to secure bridging finance is by applying through a specialist bridging finance lender. These companies are experts at providing niche bridging loan advice and guiding you through the entire application process.
How to arrange bridging finance in Ireland
Arranging bridging finance in the Republic of Ireland couldn’t be easier. Compare bridging finance lenders in our bridging loan directory to find the best loan for you.
It’s always worth talking to several lenders to ensure you get the best deal on your bridging finance. And hopefully, this guide has helped you better understand bridging loans in Ireland.